CUPERTINO, CA -- July 25, 1996 -- Symantec Corporation (Nasdaq: SYMC) today announced revenues for the June 1996 quarter of $109.2 million compared to revenues of $109.9 million reported in the June 1995 quarter. Core business revenues continued to grow; however, this growth was offset by continued erosion in Symantec's non-focused product lines (from approximately 20% of revenue in the June 1995 quarter to approximately 5% of revenue in the June 1996 quarter). Before acquisition and other non-recurring expenses, income for the quarter was $4.2 million or $0.08 per share on 55.1 million shares compared to income of $6.8 million or $0.12 per share on 54.5 million shares in the June 1995 quarter.
During the quarter, Symantec recorded acquisition and other non-recurring expenses of $1.3 million, which included $0.6 million for the acquisition of Fast Track, Inc. and $0.7 million for the centralization of certain research and development activities and other non-recurring expenses. Net income for the quarter, after acquisition and other non-recurring expenses, was $3.0 million or $0.06 per share.
Symantec will continue to focus on growing revenue in its core businesses while aggressively managing operating expenses. Opportunities for revenue growth will be fueled by the continued expansion of network and anti-virus products, increases in fax market penetration, continued adoption of Windows 95 and continued growth for Java programming tools. In the September 1996 quarter, operating expenses will be reduced as a result of a reduction in workforce, consolidation of certain facilities and other cost reduction measures.
"Symantec’s fundamentals remain strong and our direction is clear in capitalizing on trends in 32-bit operating system PCs, the Internet and high-bandwidth communications," said Gordon E. Eubanks, Jr., president and CEO of Symantec Corporation. "We are providing software for desktops and the networks to which they are connected, across a diverse, high-growth product portfolio that tends to insulate the company overall from the ups and downs of various individual markets."
During the June quarter, Symantec completed the acquisition of Fast Track, Inc., a company that specializes in providing industry-leading server and device management solutions. These products will expand Symantec’s current network administration product offering which includes hardware and software inventory, software metering and distribution, network anti-virus protection, remote control, access control and network utilities.
During the quarter, Symantec entered into key relationships with leading vendors:
New Product Launches
In order to enhance a LAN administrator’s productivity and reduce network administration problems, Symantec has introduced Norton Administrator Suite - Essential Edition. Norton Administrator Suite - Essential Edition integrates a wide array of features, including hardware and software inventory, software metering and distribution, desktop virus protection, desktop configuration management, and remote control -- essential features to the network administrator in the day-to-day management of the network. Each of the suite’s components are the market and technology leaders in their categories, proven on more than 10 million desktops worldwide.
Symantec also launched several new Java programming products. Since its introduction in March, Symantec Café has been the most popular Java based development tool in the industry. Symantec Café 1.2 update includes several new features including: JDK version 1.02, remote debugging, debugger support for exception handling, integrated Just-in-Time Compiler and speed improvements in the debugger. With the introduction of Symantec Café for Macintosh, Symantec includes several features not available in any Macintosh Java-compatible development tools, including a native Java-compatible compiler that runs several times faster than the standard Sun Java Compiler, an integrated graphical class browser, tutorials and sample applets, and the Café Studio visual development utility.
The company announced the availability of ACT! for Notes, a powerful combination of the best-selling contact manager and the top-rated groupware product. ACT! for Notes provides workgroups and individual workgroup members with the most effective way to manage their business relationships by offering the combined strengths of the groupware functions found in Notes and the ease-of-use of ACT!, the market leader in contact management.
Symantec announced Norton Your Eyes Only for Windows 95. Norton Your Eyes Only provides data protection through features such as "on-the-fly" encryption technology, that automatically decrypts files when authorized users open them and re-encrypts them when saved or closed. With the Internet used increasingly for sending confidential information, this feature is necessary to prevent unauthorized viewing of information intended for "your eyes only".
Symantec, the worldwide leader in PC communications software, announced version 7.5 of its market-leading pcANYWHERE32 for Windows 95 and Windows NT. A host of new Internet and connectivity features that are especially beneficial to mobile professionals and telecommuters coupled with corporate MIS features make the new pcANYWHERE32 the premier package for mobile access and remote communications by traveling and LAN-based users.
Technical Excellence Awards
Norton Navigator and Norton AntiVirus for Windows 95 both won Editor’s Choice Awards from PC Magazine. FormFlow 2.0 was voted Best Desktop Innovation by the Electronic Messaging Association. pcANYWHERE32 won a Home Office Best Buy award from Home Office Computing as well as LAN Times Reader’s Choice Award. PC World gave its World Class Award to ACT! 2.0, Norton Utilities for Windows 95, Norton Navigator, FormFlow, pcANYWHERE32 and WinFax Pro 7.0. Norton DiskLock won the Best PC Security Product Award from InfoSecurity News. Norton Utilities for Windows 95 won an Editor’s Choice from HomePC. Symantec C++ 7.2 beat Borland and Microsoft in a head-to-head review in Infoworld.
This press release contains forward-looking statements. There are certain important factors that could cause results to differ materially from those anticipated by some of the statements made above. Among these are the anticipation of the growth of certain market segments, the positioning of Symantec’s products in those segments, the competitive environment in the software industry, dependence on other products, such as Windows 95 and the importance of new Symantec products. Additional information concerning those and other factors is contained in the "Risk Factors" section of the Proxy Statement dated October 17, 1995 and the company’s Form 10-K for the fiscal year ended March 29, 1996.
Symantec Corporation develops, markets, and supports a complete line of application and system software products designed to enhance individual and workgroup productivity as well as manage networked computing environments. Platforms supported include IBM personal computers and compatibles, Apple Macintosh computers as well as all major network operating systems.
About Symantec Corporation
Founded in 1982, the company’s global operations span North America, Europe and several fast growing markets throughout Asia Pacific and Latin America. Information on the company and its products can be obtained by calling (800) 441-7234 toll free or (541) 334-6054.
NOTE TO EDITORS: If you would like additional information on Symantec Corporation and its products, please view the Symantec Press Center at http://www.symantec.com/invest/ on Symantec's website.
Consolidated Statements of Operations Consolidated Balance Sheets
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Symantec Corporation, 10201 Torre Avenue, Cupertino, CA 95014 USA
(800) 441-7234 or (541) 334-6054